MOSCOW (MRC) -- Ukraine will hold a new tender for two semisubmersible rigs after a USD1.23 bilion deal with construction giant Keppel was called off last week, according to Upstreamonline.
The Singapore firm disclosed last week that the contract with Naftohaz Ukrainy would not go forward as "certain conditions in the timeline set were not met," according to Keppel.
Energy Minister Eduard Stavytsky said the company was not able to line up financing in time, accordint to a Reuters report.
"We need drilling rigs and we will soon hold a new tender," Stavytsky said according to the news wire.
Naftohaz did not immediately respond to a request from Upstream to confirm the report.
One source suggested to Upstream this week that discussions were still continuing for the contract though the previously negotiated agreement was off the table.
The Ukraine company previously said it intended a longterm programme to drill at least 200 development wells in the Black Sea at water depths between 120 metres and 1000 metres.
Four companies submitted bids in the tender, including Latvia’s Rigas Kugu Buvetava and two little-known companies headquartered in Belize.
Naftohaz was reportedly willing to pay up to USD1.4 billion for the units.
But Upstream reported some sources as doubtful that company would be able to muster the funds given its debt and a difficult road to finding large oil reserves in the Black Sea.
As MRC wrote earlier, Russian gas giant Gazprom and Ukrainian national oil and gas company Naftogaz previously started setting up a joint venture to develop the Black Sea shelf.
MRC